Ripple effect from VW ‘dieselgate’ scandal still being felt
Ask any executive of an auto company what business they are in and you’re unlikely to hear the word “cars”. Instead you will be told they are now a tech company or focused on “mobility”.
For all the desire to model themselves as the next Apple or Google, the stench of Volkswagen’s “dieselgate” scandal still stinks up the the corridors of power at European carmakers. Nearly four years on from the German car giant admitted to fitting cheat devices to 11 million vehicles in order to rig US emissions tests, the fines continue to pile up. read more »
Porsche Pays Massive Fine Because Volkswagen Cheated
Porsche has just announced it will not appeal a penalty imposed upon it by the Stuttgart Prosecutor’s Office for violating the German Act on Regulatory Offenses. In other words, Porsche has agreed to pay a penalty following an investigation regarding its role in fitting vehicles with diesel engines. Dieselgate is still haunting VW Group brands. Porsche will now pay a total of €535 Euros, or $599 million according to the latest conversion rates, for negligent breach beginning in 2009 for failure to follow regulatory requirements in exhaust gas-related testing.
Parent company Volkswagen Group knew a heavy fine was coming and therefore began setting aside the money. Porsche says it will take the financial impact of this fine into account when it reports its second-quarter earnings. read more »